BILL NUMBER: SB 378	CHAPTERED  09/21/99

	CHAPTER   456
	FILED WITH SECRETARY OF STATE   SEPTEMBER 21, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 21, 1999
	PASSED THE SENATE   AUGUST 31, 1999
	PASSED THE ASSEMBLY   AUGUST 26, 1999
	AMENDED IN ASSEMBLY   AUGUST 23, 1999
	AMENDED IN ASSEMBLY   JULY 12, 1999
	AMENDED IN SENATE   APRIL 15, 1999
	AMENDED IN SENATE   MARCH 25, 1999
	AMENDED IN SENATE   MARCH 15, 1999

INTRODUCED BY   Senator Kelley

                        FEBRUARY 11, 1999

   An act to amend Sections 7500.3, 7502.1, 7502.2, 7503.10, 7504,
7506.3, 7506.5, 7506.9, 7506.11, 7506.13, 7506.14, 7507.2, 7510.1,
and 7511 of the Business and Professions Code, and to amend Sections
615, 22850.5, and 27907 of the Vehicle Code, relating to collateral
recovery.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 378, Kelley.  Collateral recovery.
   Existing law, the Collateral Recovery Act, licenses and regulates
persons engaged in the business of repossessing personal property.  A
violation of that act, including certain specific provisions
thereof, is a misdemeanor.
   This bill would  authorize, within existing resources, the
Commissioner of Financial Institutions, the Commissioner of
Corporations, and the Director of the Department of Motor Vehicles to
each designate employees to investigate and report on violations of
the act by the licensees of their respective departments.
   Existing law provides that repossession agency licenses are
subject to cyclical renewal and expire one year following the date of
issuance or assigned renewal date.
   This bill would, instead, provide for expiration of an original
repossession agency license one year following the date of issuance,
unless renewed.  A renewal would expire in 2 years, as specified.
   Existing law requires employees of licensees to be registered
under the act.
   This bill would additionally require those persons contracting
with licensees to be registered.  The bill would make related and
conforming changes.
   Existing law provides that the renewal fee for a repossession
agency license may not exceed $475 annually.
   This bill would provide, instead, that the renewal fee may not
exceed $715 biennially.
   Existing law requires applicants for repossessor qualification
certification to meet and substantiate certain specified experience
requirements.
   This bill would require an applicant to certify as to the
completion of those requirements, a violation of which is an existing
crime.  In expanding the scope of an existing crime, the bill would
impose a state-mandated local program.
   Existing law authorizes a city, county, or city and county, or
state agency to impose a charge equal to its administrative costs for
the removal, impound, storage, or release of properly impounded
vehicles.  That charge may be collected at the time of vehicle
release.
   This bill would, instead, limit the collection of that charge from
only the registered owner or his or her agent.
   Existing law, for purposes of regulation under the Vehicle Code,
defines a "tow truck" and provides that persons licensed as a
repossession agency may utilize a tow truck when repossessing
vehicles.
   This bill would exclude a repossessor's tow vehicle from the
definition of "tow truck."  It would also define a "repossessor's tow
vehicle" as one used exclusively in the course of the repossession
business.
   Existing law requires that there be conspicuously displayed on
both the right and left side of a tow truck or an automobile
dismantler's tow vehicle used to tow or carry vehicles, a sign
showing, among other things, the name of the company or the owner or
operator of the tow truck or automobile dismantler's tow vehicle.
   This bill would also make that requirement applicable to a
repossessor's tow vehicle.  It would also make related changes and
state legislative intent.
   The bill would incorporate additional changes to Section 7506.5 of
the Business and Professions Code proposed by AB 341 to become
operative only if both bills amend that section and are enacted and
become effective on or before January 1, 2000, and this bill is
enacted after AB 341.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 7500.3 of the Business and Professions Code is
amended to read:
   7500.3.  A repossession agency shall not include any of the
following:
   (a) Any bank subject to the jurisdiction of the Commissioner of
Financial Institutions of the State of California under Division 1
(commencing with Section 99) of the Financial Code or the Comptroller
of the Currency of the United States.
   (b) Any person organized, chartered, or holding a license or
authorization certificate to make loans pursuant to the laws of this
state or the United States who is subject to supervision by any
official or agency of this state or the United States.
   (c) An attorney at law in performing his or her duties as an
attorney at law.
   (d) The legal owner of collateral which is subject to a security
agreement.
   (e) An officer or employee of the United States of America, or of
this state or a political subdivision thereof, while the officer or
employee is engaged in the performance of his or her official duties.

   (f) A person employed exclusively and regularly by one employer in
connection with the affairs of that employer only, and where there
exists an employer-employee relationship.
   (g) A qualified certificate holder or a registrant when performing
services for, or on behalf of, a licensee.
  SEC. 1.5.  Section 7502.1 of the Business and Professions Code is
amended to read:
   7502.1.  (a) Any person who violates any provision of this
chapter, or who conspires with another person to violate any
provision of this chapter, or who knowingly engages a nonexempt
unlicensed person to repossess collateral on his or her behalf is
guilty of a misdemeanor, and is punishable by a fine of five thousand
dollars ($5,000), or by imprisonment in the county jail for not more
than one year, or by both the fine and imprisonment.
   (b) Within existing resources, the Commissioner of Financial
Institutions, the Commissioner of Corporations, and the Director of
Motor Vehicles may each designate employees to investigate and report
on violations of this chapter by any of the licensees of their
respective departments.  Those employees are authorized to actively
cooperate with the bureau in the investigation of those activities.
   (c) A proceeding to impose the penalties specified in subdivision
(a) may be brought in any court of competent jurisdiction in the name
of the people of the State of California by the Attorney General or
by any district attorney or city attorney, or with the consent of the
district attorney, by the city prosecutor in any city or city and
county having a full-time city prosecutor, for the jurisdiction in
which the violation occurred.  If the action is brought by a district
attorney, the penalty collected shall be paid to the treasurer of
the county in which the judgment is entered.  If the action is
brought by a city attorney or city prosecutor, one-half of the
penalty collected shall be paid to the treasurer of the city in which
the judgment was entered and one-half to the treasurer of the county
in which the judgment was entered.  If the action is brought by the
Attorney General, all of the penalty collected shall be deposited in
the Private Security Services Fund.
  SEC. 2.  Section 7502.2 of the Business and Professions Code is
amended to read:
   7502.2.  (a) Any financial institution that knowingly engages a
nonexempt unlicensed person to repossess collateral on its behalf is
guilty of a misdemeanor, and is punishable by a fine of five thousand
dollars ($5,000).
   (b) Within existing resources, the Commissioner of Financial
Institutions and the Commissioner of Corporations may each designate
employees to investigate and report on violations of this section by
any of the licensees of their respective departments.  Those
employees are authorized to actively cooperate with the bureau in the
investigation of those activities.
   (c) A proceeding to impose the fine specified in subdivision (a)
may be brought in any court of competent jurisdiction in the name of
the people of the State of California by the Attorney General or by
any district attorney or city attorney, or with the consent of the
district attorney, by the city prosecutor in any city or city and
county having a full-time city prosecutor, for the jurisdiction in
which the violation occurred.  If the action is brought by a district
attorney, the penalty collected shall be paid to the treasurer of
the county in which the judgment is entered.  If the action is
brought by a city attorney or city prosecutor, one-half of the
penalty collected shall be paid to the treasurer of the city in which
the judgment was entered and one-half to the treasurer of the county
in which the judgment was entered.  If the action is brought by the
Attorney General, all of the penalty collected shall be deposited in
the Private Security Services Fund.
  SEC. 3.  Section 7503.10 of the Business and Professions Code is
amended to read:
   7503.10.  (a) An original repossession agency license shall expire
one year following the date of issuance, unless renewed as provided
in this chapter.
   (b) A renewal repossession agency license shall expire two years
following the date of renewal, unless renewed as provided in this
chapter.
   (c) At least 60 days prior to the expiration of the license, the
bureau shall mail to the licensee a renewal form prescribed by the
director.  To renew an unexpired license, the licensee shall complete
and mail the renewal form to the bureau, pay any and all fines
assessed pursuant to Section 7501.7 and resolved in accordance with
the provisions of that section, and pay the renewal fee prescribed by
this chapter.
   (d) Upon the issuance of the initial license or renewal license,
the bureau shall issue to the licensee a suitable pocket
identification card which includes a photograph of the licensee.  The
photograph shall be of a size prescribed by the bureau.  The card
shall contain the name of the licensee's company.
  SEC. 4.  Section 7504 of the Business and Professions Code is
amended to read:
   7504.  (a) Except as otherwise provided in this chapter, an
applicant for a qualification certificate shall comply with all of
the following:
   (1) Be at least 18 years of age.
   (2) Have been, for at least two years of lawful experience, during
the five years preceding the date on which his or her application is
filed, a registrant or have had two years of lawful experience in
recovering collateral within this state.  Lawful experience means
experience in recovering collateral as a registrant pursuant to this
chapter or as a salaried employee of a financial institution or
vehicle dealer.
   Two years' experience shall consist of not less than 4,000 hours
of actual compensated work performed by the applicant preceding the
filing of an application.
   An applicant shall certify that he or she has completed the
claimed hours of qualifying experience and the exact details as to
the character and nature thereof by written certifications from the
employer, licensee, financial institution, or vehicle dealer, subject
to independent verification by the director as he or she may
determine.  In the event of inability of an applicant to supply the
written certifications from the employer, licensee, financial
institution or vehicle dealer in whole or in part, applicants may
offer other written certifications from other persons substantiating
their experience for consideration by the director.  All
certifications shall include a statement that representations made
are true, correct, and contain no material omissions of fact to the
best knowledge and belief of the applicant or the person submitting
the certification.
   (3) Complete and forward to the bureau a qualified certificate
holder application which shall be on a form prescribed by the
director.  The application shall be accompanied by two recent
photographs of the applicant, of a type prescribed by the director,
and two classifiable sets of his or her fingerprints.  The residence
address, residence telephone number, and driver's license number of
each qualified certificate holder or applicant for a qualification
certificate, if requested, shall be confidential pursuant to the
Information Practices Act of 1977 (Chapter 1 (commencing with Section
1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code) and
shall not be released to the public.
   (4) Pass the required examination.
   (5) Pay the required application and examination fees to the
bureau.
   The amendments made to this section during the 1990 portion of the
1989-90 Regular Session shall only apply to applications filed on or
after January 1, 1992.
   (b) Upon the issuance of the initial qualification certificate or
renewal qualification certificate, the bureau shall issue to the
certificate holder a suitable pocket identification card which
includes a photograph of the certificate holder.  The photograph
shall be of a size prescribed by the bureau.  The card shall contain
the name of the licensee with whom the certificate holder is
employed.
  SEC. 5.  Section 7506.3 of the Business and Professions Code is
amended to read:
   7506.3.  Except as otherwise provided in this article, every
person entering the employ of, or contracting with, a licensee or
multiple licensee after the effective date of this article shall
immediately complete an application for an initial registration or a
reregistration and shall file the appropriate application with the
chief within 15 working days after the commencement of employment or
contracted services for the licensee or multiple licensee for whom
the applicant is employed or contracted.  Applicants for registration
must be at least 18 years of age.
   (a) An initial registration application shall be required of those
persons who have not previously submitted an application for
registration, or been registered as a registrant.
   (b) A reregistration application shall be required of those
persons who have previously submitted or been registered as a
registrant.
   (c) No registrant of a multiple licensee shall be required to file
more than one application for registration or reregistration for
each multiple licensee.
  SEC. 6.  Section 7506.5 of the Business and Professions Code is
amended to read:
   7506.5.  All information obtained on the application shall be
confidential pursuant to the Information Practices Act (Chapter 1
(commencing with Section 1798) of Title 1.8 of Part 4 of Division 3
of the Civil Code) and shall not be released to the public except for
the registrant's full name, the licensee's name and address, and the
registration number.  The application shall be verified and shall
include:
   (a) The full name, residence address, residence telephone number,
date and place of birth, and driver's license number of the applicant
or registrant.
   (b) A statement listing any and all names used by the applicant or
registrant, other than the name by which he or she is currently
known.  If the applicant or registrant has never used a name other
than his or her true name, this fact shall be set forth in the
statement.
   (c) The name and address of the licensee and the date the
employment or contract commenced.
   (d) The title of the position occupied by the applicant or
registrant and a description of his or her duties.
   (e) Two recent photographs of the applicant or registrant, of a
type prescribed by the chief, and two classifiable sets of his or her
fingerprints.
  SEC. 6.5.  Section 7506.5 of the Business and Professions Code is
amended to read:
   7506.5.  All information obtained on the application shall be
confidential pursuant to the Information Practices Act (Chapter 1
(commencing with Section 1798) of Title 1.8 of Part 4 of Division 3
of the Civil Code) and shall not be released to the public except for
the registrant's full name, the licensee's name and address, and the
registration number.  The application shall be verified and shall
include:
   (a) The full name, residence address, residence telephone number,
date and place of birth, and driver's license number of the applicant
or registrant.
   (b) A statement listing any and all names used by the applicant or
registrant, other than the name by which he or she is currently
known.  If the applicant or registrant has never used a name other
than his or her true name, this fact shall be set forth in the
statement.
   (c) The name and address of the licensee and the date the
employment or contract commenced.
   (d) The title of the position occupied by the applicant or
registrant and a description of his or her duties.
   (e) Two recent photographs of the applicant or registrant, of a
type prescribed by the chief, and two classifiable sets of his or her
fingerprints, one set of which shall be forwarded to the Federal
Bureau of Investigation for purposes of a background check.
   (f) The bureau may impose a fee not to exceed three dollars ($3)
for processing classifiable fingerprint cards submitted by
applicants, excluding those submitted into an electronic fingerprint
system using electronic fingerprint technology.
  SEC. 7.  Section 7506.9 of the Business and Professions Code is
amended to read:
   7506.9.  (a) Upon the issuance of the initial registration,
reregistration or renewal, the chief shall issue to the registrant a
suitable pocket identification card.  At the request of the
registrant, the identification card may include a photograph of the
registrant.  The photograph shall be of a size prescribed by the
bureau.  The card shall contain the name of the licensee with whom
the registrant is registered.  The applicant may request to be issued
an enhanced pocket card that shall be composed of durable material
and may incorporate technologically advanced security features.  The
bureau may charge a fee sufficient to reimburse the department for
costs for furnishing the enhanced pocket card.  The fee charged may
not exceed the actual cost for system development, maintenance, and
processing necessary to provide the service, and may not exceed six
dollars ($6).  If the applicant does not request an enhanced card,
the department shall issue a standard card at no cost to the
applicant.
   (b) Until the registration certificate is issued or denied, a
person may be assigned to work with a temporary registration on a
secure form prescribed by the chief, and issued by the qualified
certificate holder, that has been embossed by the bureau with the
state seal for a period not to exceed 120 days from the date the
employment or contract commenced, provided the person signs a
declaration under penalty of perjury that he or she has not been
convicted of a felony or committed any other act constituting grounds
for denial of a registration pursuant to Section 7506.8 (unless he
or she declares that the conviction of a felony or the commission of
a specified act or acts occurred prior to the issuance of a
registration by the chief and the conduct was not the cause of any
subsequent suspension or termination of a registration), and that he
or she has read and understands the provisions of this chapter.
   (c) The chief shall issue an additional temporary registration for
not less than 60 days nor more than 120 days, if the chief
determines that the investigation of the applicant will take longer
to complete than the initial temporary registration time period.
   (d) No person shall perform the duties of a registrant for a
licensee unless the person has in his or her possession a valid
repossessor registration card or evidence of a valid temporary
registration or registration renewal as described in subdivision (b)
of this section or subdivision (c) of Section 7506.10.  Every person,
while engaged in any activity for which licensure is required, shall
display his or her valid pocket card as provided by regulation.
  SEC. 8.  Section 7506.11 of the Business and Professions Code is
amended to read:
   7506.11.  (a) Each registration is valid until the registrant
ceases performing services for the licensee indicated on the
registration card or until the registration expires.
   (b) Each person registered under this article shall notify the
chief, in writing, within 30 days of any change in employment or
contract status with a licensee.  If the person ceases to be employed
by or perform services for a licensee, the licensee shall notify the
chief, in writing, within 30 days.  The registered individual shall
surrender his or her registration card to the licensee.  The licensee
shall forward the registration card to the chief.  If at some
subsequent time the person is again employed or retained by a
licensee, he or she shall apply for reregistration in the manner
provided in this article.
   (c) Each registrant, while registered, shall notify the chief, in
writing, within 30 days after any change in his or her residence
address.
  SEC. 9.  Section 7506.13 of the Business and Professions Code is
amended to read:
   7506.13.  (a) The licensee shall at all times be responsible for
ascertaining that his or her registrants are currently registered or
have made proper application for registration as provided in this
article.  The licensee may not have in his or her employment or under
contract a person subject to registration who has not registered
within the time required or whose registration has expired or been
revoked, denied, suspended, or canceled.
   (b) The bureau shall keep current and accurate records of all
persons registered under this article.
  SEC. 10.  Section 7506.14 of the Business and Professions Code is
amended to read:
   7506.14.  If the chief determines that continued services by an
applicant for registration in his or her current capacity may present
undue hazard to public safety, the licensee, upon proper
notification from the chief, shall suspend the applicant from
rendering services in that capacity until the licensee is notified in
writing by the chief within 60 days from the date of notification of
suspension that the applicant's registration has been approved or
denied.
  SEC. 11.  Section 7507.2 of the Business and Professions Code is
amended to read:
   7507.2.  (a) A licensee is responsible for those actions that are
performed in violation of this chapter by his or her registrants,
including his or her manager, when acting within the course and scope
of his or her employment or contract.
   (b) Each licensee shall maintain a file or record of the name,
address, commencing date of employment or retention, and position of
each registrant, and the date of termination of the employment or
contract when a registrant is terminated.  The file and records,
together with usual compensation records, shall be available for
inspection by the bureau, and copies thereof, and information
pertaining thereto or contained therein, shall be submitted to the
bureau upon request.
  SEC. 12.  Section 7510.1 of the Business and Professions Code is
amended to read:
   7510.1.  In addition to any other remedies authorized by this
chapter, the director may suspend or revoke a repossession agency
license, a qualification certificate, or registration issued under
this chapter if the director determines that the licensee or the
licensee's manager, if an individual, or if the licensee is a person
other than an individual, that any of its officers, partners,
registrants, employees, or its manager, has:
   (a) Made any false statement or given any false information in
connection with an application for a license or a renewal or
reinstatement of a license.
   (b) Violated any provisions of this chapter.
   (c) Violated any rule of the director adopted pursuant to
authority contained in this chapter.
   (d) Been convicted of a felony or any crime substantially related
to the repossession agency business including illegally using,
carrying, or possessing a deadly weapon.
   (e) Committed or permitted any registrant or employee to commit
any act while the license was expired which would be cause for the
suspension or revocation of a license, or grounds for the denial of
an application for a license.
   (f) Unlawfully committed assault, battery, or kidnapping, or used
force or violence on any person.
   (g) Knowingly violated, or advised, encouraged, or assisted the
violation of any court order or injunction in the course of business
as a licensee.
   (h) Been convicted of a violation of Section 148 of the Penal
Code, resisting or obstructing a public officer.
   (i) Committed any act which is a ground for denial of an
application for license under this chapter.
   (j) Committed any act prohibited by Chapter 1.5 (commencing with
Section 630) of Title 15 of Part 1 of the Penal Code.
   (k) Committed any act in the course of the licensee's business
constituting dishonesty or fraud, including, but not limited to:
   (1) Knowingly making a false statement relating to evidence or
information obtained in the course of employment or while under
contract, or knowingly publishing a slander or a libel in the course
of business.
   (2) Using illegal means in the collection or attempted collection
of a debt or obligation.
   (l) Represented that the licensee has an office and conducts
business at a specific address when that is not the case.
  SEC. 13.  Section 7511 of the Business and Professions Code is
amended to read:
   7511.  Effective July 1, 1998, the bureau shall establish and
assess fees and penalties for licensure and registration as displayed
in this section.  The fees prescribed by this chapter are as
follows:
   (a) The application fee for an original repossession agency
license may not exceed eight hundred twenty-five dollars ($825).
   (b) The application fee for an original qualification certificate
may not exceed three hundred twenty-five dollars ($325).
   (c) The renewal fee for a repossession agency license may not
exceed seven hundred fifteen dollars ($715) biennially.
   (d) The renewal fee for a license as a qualified certificate
holder may not exceed four hundred fifty dollars ($450) biennially.
   (e) Notwithstanding Section 163.5, the reinstatement fee for a
repossession agency license required pursuant to Sections 7503.11 and
7505.3 is the amount equal to the renewal fee plus a penalty of 50
percent thereof.
   (f) Notwithstanding Section 163.5, the reinstatement fee for a
license as a qualified certificate holder required pursuant to
Sections 7504.7 and 7503.11 is the amount equal to the renewal fee
plus a penalty of 50 percent thereof.
   (g) A fee for reexamination of an applicant for a qualified
manager may not exceed thirty dollars ($30).
   (h) An initial registrant registration fee may not exceed
seventy-five dollars ($75), a registrant reregistration fee may not
exceed thirty dollars ($30), and a registrant biennial renewal fee
may not exceed sixty dollars ($60) per registration.  Notwithstanding
Section 163.5 and this subdivision, the reregistration fee for a
registrant whose registration expired more than one year prior to the
filing of the application for reregistration may not exceed
seventy-five dollars ($75).
   (i) The delinquency fee is 50 percent of the renewal fee in effect
on the date of expiration, but not less than twenty-five dollars
($25).
   (j) The fingerprint processing fee is that amount charged the
bureau by the Department of Justice.
   (k) The director shall furnish one copy of any issue or edition of
the licensing law and rules and regulations to any applicant or
licensee without charge.  The director shall charge and collect a fee
not to exceed ten dollars ($10) plus sales tax for each additional
copy which may be furnished on request to any applicant or licensee,
and for each copy furnished on request to any other person.
   (l) The processing fee for the assignment of a repossession agency
license pursuant to Section 7503.9 may not exceed one hundred
twenty-five dollars ($125).
   This section shall become operative July 1, 1998, except that the
changes to this section enacted during the first year of the
1999-2000 Regular Session shall become operative January 1, 2000.
Notwithstanding the operative date of this section, before, on, or
after July 1, 1998, the bureau may adopt regulations specifying the
fees authorized by this section.
  SEC. 14.  Section 615 of the Vehicle Code is amended to read:
   615.  (a) A "tow truck" is a motor vehicle which has been altered
or designed and equipped for, and primarily used in the business of,
transporting vehicles by means of a crane, hoist, tow bar, tow line,
or dolly or is otherwise primarily used to render assistance to other
vehicles.  A "roll-back carrier" designed to carry up to two
vehicles is also a tow truck.  A trailer for hire that is being used
to transport a vehicle is a tow truck.  "Tow truck" does not include
an automobile dismantlers' tow vehicle or a repossessor's tow
vehicle.
   (b) "Repossessor's tow vehicle" means a tow vehicle which is
registered to a repossessor licensed or registered pursuant to
Chapter 11 (commencing with Section 7500) of Division 3 of the
Business and Professions Code that is used exclusively in the course
of the repossession business.
   (c) "Automobile dismantlers' tow vehicle" means a tow vehicle
which is registered by an automobile dismantler licensed pursuant to
Chapter 3 (commencing with Section 11500) of Division 5 and which is
used exclusively to tow vehicles owned by that automobile dismantler
in the course of the automobile dismantling business.
  SEC. 15.  Section 22850.5 of the Vehicle Code is amended to read:
   22850.5.  (a) A city, county, or city and county, or a state
agency may adopt a regulation, ordinance, or resolution establishing
procedures for the release of properly impounded vehicles and for the
imposition of a charge equal to its administrative costs relating to
the removal, impound, storage, or release of the vehicles.  Those
administrative costs may be waived by the local or state authority
upon verifiable proof that the vehicle was reported stolen at the
time the vehicle was removed.
   (b) The following apply to any charges imposed for administrative
costs pursuant to subdivision (a):
   (1) The charges shall only be imposed on the registered owner or
the agents of that owner and shall not include any vehicle towed
under an abatement program or sold at a lien sale pursuant to
Sections 3068.1 to 3074, inclusive, of, and Section 22851 of, the
Civil Code unless the sale is sufficient in amount to pay the
lienholder's total charges and proper administrative costs.
   (2) Any charges shall be collected by the local or state authority
only from the registered owner or an agent of the registered owner.


(3) The charges shall be in addition to any other charges authorized
or imposed pursuant to this code.
   (4) No charge may be imposed for any hearing or appeal relating to
the removal, impound, storage, or release of a vehicle unless that
hearing or appeal was requested in writing by the registered or legal
owner of the vehicle or an agent of that registered or legal owner.
In addition, the charge may be imposed only upon the person
requesting that hearing or appeal.
  SEC. 16.  Section 27907 of the Vehicle Code is amended to read:
   27907.  There shall be displayed in a conspicuous place on both
the right and left side of a tow truck, a repossessor's tow vehicle,
or an automobile dismantler's tow vehicle used to tow or carry
vehicles a sign showing the name of the company or the owner or
operator of the tow truck or tow vehicle.  The sign shall also
contain the business address and telephone number of the owner or
driver.  The letters and numbers of the sign shall not be less than 2
inches in height and shall be in contrast to the color of the
background upon which they are placed.
   A person licensed as a repossession agency pursuant to Chapter 11
(commencing with Section 7500) of Division 3 of the Business and
Professions Code, or a registrant of the agency, may use the license
number issued to the agency by the Department of Consumer Affairs in
lieu of a name, business address, and telephone number.
  SEC. 17.  Section 6.5 of this bill incorporates amendments to
Section 7506.5 of the Business and Professions Code proposed by both
this bill and AB 341.  It shall only become operative if (1) both
bills are enacted and become effective on or before January 1, 2000,
(2) each bill amends Section 7506.5 of the Business and Professions
Code, and (3) this bill is enacted after AB 341, in which case
Section 6 of this bill shall not become operative.
  SEC. 18.  The Legislature finds and declares that unlawful
unlicensed activity by persons performing personal property
repossessions, and the unlawful hiring of those persons, are not in
consumers' best interests.  It is the Legislature's intent in
amending Sections 7502.1 and 7502.2 of the Business and Professions
Code in Sections 1.5 and 2 of this act that state agencies cooperate
with one another to curtail unlawful unlicensed activity.
  SEC. 19.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
